The second issue in 2004 government treasury bonds began Monday at various banks all over the country. This is the first sale of bonds after the recent interest rate hike.

Early in the morning, many people were already waiting in line. Before 9 am, the notes had been sold out in banks including the Industrial and Commercial Bank of China, China Construction Bank and Beijing City Commercial Bank.

The strong popularity of the treasury bond can be attributed to the interest rate rise which was announced last Friday.

According to the rules issued by the Ministry of Finance, the interest rate of the bond should be tweaked according to the saving interest rate adjustment. That means the interest rate for three-year and five-year notes was raised to 3.37 percent and 3.81 percent respectively.

(CCTV.com November 2, 2004)